Shapiro Unveils "Proprietor Economy" Model Where Individuals Replace Corporations

In a radical departure from traditional capitalist frameworks, AI researcher David Shapiro has introduced a proprietary economic model where individual proprietors will replace corporations entirely, with each person directly controlling networks of autonomous AI agents and physical robots.

This theoretical framework, which Shapiro describes as the "logical endpoint" of advancing AI capabilities, represents a fundamental restructuring of economic organization, writes End of Miles.

The Death of Companies

Central to Shapiro's framework is the prediction that traditional corporate structures become obsolete in an advanced AI economy.

"I'm starting to believe more and more that you're not going to need a company. You're just going to need a human, an owner, a principal, an economic principal who owns a bunch of robots and agents, and they go do everything for them," Shapiro explained.David Shapiro, AI researcher

This model positions individual humans as economic principals – the originators of economic authority – surrounded by layers of autonomous AI agents. The model draws from established principal-agent theory but radically recontextualizes it for a world of artificial intelligence.

From Employees to Robotic Networks

Shapiro argues the fundamental economics will drive this transformation, not just technological possibility.

"The optimal number of employees is zero because humans are expensive," Shapiro states. "Think about that model where you have a human in the center and you're surrounded by layers and layers of autonomous AI agents and robots – that's probably how the economy is going to work in the future." David Shapiro, AI researcher

The framework presupposes what Shapiro terms cognitive saturation – a state where ubiquitous AI intelligence exceeds human capabilities across all devices and diminishing returns on additional intelligence become apparent. He suggests even smartwatches will exceed human intelligence.

Why Property Rights Remain Fundamental

Despite this radical restructuring, Shapiro emphasizes that property rights remain essential – possibly even more critical than in traditional capitalism.

"Property rights are the foundational assumption of economics today. I've read a whole bunch of books, the most recent one was 'Why Nations Fail,' which talks about how important property rights are for functioning societies. I really believe that we should double down on property rights." David Shapiro, AI researcher

This emphasis on property creates a framework where ownership of autonomous systems becomes the primary economic driver, replacing labor, management structures, and traditional corporate organization.

The Evolution Beyond Business Structure

According to Shapiro, this isn't simply another model of corporate organization but represents evolution beyond the entire concept of "business" as we understand it.

The concepts of employees, management, and organizational structures all dissolve when a single human principal can directly control potentially unlimited productive capacity through autonomous digital and physical agents.

"You're going to be the proprietor, and that sort of thing. Think about that model where you have a human in the center and you're surrounded by layers and layers and layers of autonomous AI agents and robots, and that's probably how the economy is going to work in the future." David Shapiro, AI researcher

While Shapiro acknowledges companies or corporations might persist in some form, he emphasizes they will "change dramatically" as direct agent control becomes the dominant economic paradigm.